1. Chapter 19 The Global Marketplace

2. Topics to Cover Deciding on the Global Marketing Program Deciding on the Global Marketing Organization

3. Deciding on the Global Marketing Program Standardized marketing mix involves selling the same products and using the same marketing approaches worldwide Adapted marketing mix involves adjusting the marketing mix elements in each target market, bearing more costs but hoping for a larger market share and ROI

4. Deciding on the Global Marketing Program Straight product extension means marketing a product in a foreign market without any change Product adaptation involves changing the product to meet local conditions or wants Product invention consists of creating something new for a specific country market – Maintain or reintroduce earlier products – Create new products Product

5. Deciding on the Global Marketing Program Product

6. Deciding on the Global Marketing Program Promotion Companies can either adopt the same communication strategy they use at home or change it for each market

7. Deciding on the Global Marketing Program Price Uniform pricing is the same price in all markets but does not consider income or wealth where the price may be too high in some or not high enough in other markets Market-based pricing is the price the market can pay but does not consider actual costs Standard markup pricing is a price based on a percentage of cost but can cause problems in countries with high costs

8. Deciding on the Global Marketing Program Distribution Channels: Whole-Channel View Seller’s headquarters organization supervises the channel and is also a part of the channel Channels between nations move the products to the borders of the foreign nations Channels within nations move the products from their foreign point of entry to the final customers

9. Deciding on the Global Marketing Organization Typical management of international marketing activities include: Organizing and exporting department with a sales manager and staff Creating an international division organized by geography, products, or operating units Becoming a complete global organization

10. Chapter 20 Sustainable Marketing: Social Responsibility and Ethics

11. Topics to Cover Sustainable Marketing Social Criticisms of Marketing

12. Sustainable Marketing Meeting needs of consumers while preserving the ability of future generations to meet their needs

13. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers High PricesDeceptive PracticesHigh-Pressure SellingSubstandard, Harmful or Unsafe ProductsPlanned Obsolescence Poor Service to Disadvantaged Consumers

14. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: High Cost of Distribution Complaint: Prices are too high due to high costs of: distribution Advertising and promotion Excessive mark-ups Response: Intermediaries are important and offer value Advertising informs buyers of availability and merits of a brand Consumer’s don’t understand the cost of doing business

15. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: Deceptive Practices Complaint: Companies use deceptive practices that lead customers to believe they will get more value than they actually do. These practices fall into three categories: Deceptive pricing Deceptive promotion Deceptive packaging

16. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: Deceptive Practices Response: Support Legislation to protect consumers from deceptive practices Make lines clear—Is it deception, alluring, or puffery that is just an exaggeration for effect? Products that are harmful Products that provide little benefit Products that are not made well

17. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: Deceptive Practices Response: Support Legislation to protect consumers from deceptive practices Make lines clear—Is it deception, alluring, or puffery that is just an exaggeration for effect? Products that are harmful Products that provide little benefit Products that are not made well

18. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: High-Pressure Selling Complaint: Salespeople use high- pressure selling that persuade people to buy goods they had no intention of buying. Response: Most selling involves building long-term relationships and valued customers. High-pressure or deceptive selling can damage these relationships.

19. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: Substandard, Harmful, or Unsafe Products Complaint: Products have poor quality, provide little benefit, and can be harmful. Response: Good marketers realize there is no value in marketing substandard (shoddy), harmful, or unsafe products.

20. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: Planned Obsolescence Complaint: Producers cause their products to become obsolete and change consumers’ concepts of acceptable styles to encourage more and earlier buying. Response: Planned obsolescence is really the result of competitive market forces leading to ever-improving goods and services. Customers like style changes and want the latest innovations

21. Social Criticisms of Marketing Marketing’s Impact on Individual Consumers: Poor Service to Disadvantaged Consumers Complaint: Marketers serve disadvantaged customers poorly. Some retail companies “redline” poor neighborhoods and avoid placing stores there. Response: Some marketers profitably target these customers

22. Social Criticisms of Marketing Marketing’s Impact on Society as a Whole False wants and too much materialismToo few social goodsCultural pollution

23. Social Criticisms of Marketing Marketing’s Impact on Society as a Whole False Wants and Too Much Materialism Complaint: The marketing system urges too much interest in material possessions. People are judged by what they own rather than who they are, creating false wants that benefit industry more than they benefit consumers. Response: People do have strong defenses against advertising and other marketing tools. Marketers are most effective when they appeal to existing wants rather than creating new ones. The high failure rate of new products shows that companies cannot control demand.

24. Social Criticisms of Marketing Marketing’s Impact on Society as a Whole Too Few Social Goods Complaint: Businesses oversell private goods at the expense of public goods and require more public goods to support them Response: There needs to be a balance between private and public goods Producers should bear full social costs of their operations Consumers should pay the social costs of their purchases

25. Social Criticisms of Marketing Marketing’s Impact on Society as a Whole Cultural Pollution Complaint: Marketing and advertising create cultural pollution Response: Marketing and advertising are planned to reach only a target audience, and advertising makes radio and television free to users and helps to keep down the costs of newspapers and magazines. Today’s consumers have alternatives to avoid marketing and advertising from technology.

26. Social Criticisms of Marketing Marketing’s Impact on Society as a Whole Cultural Pollution Complaint: Marketing and advertising create cultural pollution Response: Marketing and advertising are planned to reach only a target audience, and advertising makes radio and television free to users and helps to keep down the costs of newspapers and magazines. Today’s consumers have alternatives to avoid marketing and advertising from technology.

27. Social Criticisms of Marketing Marketing’s Impact on Other Businesses Acquisition of competitors Unfair competitive marketing practices